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Large traders increased purchases of bitcoin put options as a reported Binance hack drove concern about near-term losses. Paradigm recorded about $590 million in BTC options block trades over eight hours, with most of the flow in puts; the trades show hedging activity, not proof of what prices will do next.
Large bitcoin traders bought more near-term put options as a hack involving Binance unfolded, with privately negotiated trades on Paradigm totaling about $590 million in notional BTC options during the eight hours after the incident began, CoinDesk reported October 30. The flow was mostly bearish, but options trades indicate how traders positioned for risk—not a confirmed forecast of bitcoin’s next move.
Paradigm’s Nicolas Quatravaux, its head of EMEA, told CoinDesk that the first major trade came at 20:38 UTC, about 15 minutes after the first outflows from a Binance wallet and before the hack news became public. The buyer took 250 lots of $78,000 bitcoin puts expiring October 31. Each lot represented one bitcoin, and CoinDesk put the trade’s notional value at about $20 million. Three minutes later, another 250-lot trade in the same options took place, with the buyer paying about 35% more.
Across the eight-hour period, Paradigm handled roughly $590 million in BTC options block trades, around half the notional volume in bitcoin options blocks on Deribit over the same period, according to the report. Much of the activity was in puts, including two 1,000-BTC blocks of mid-November $74,000 puts during the busiest hour. Their combined notional value was about $155 million.
The buying was concentrated in puts with strikes near the prevailing bitcoin price, including contracts around $74,000 to $78,000, rather than only far-out-of-the-money contracts designed to pay off in an extreme crash. Quatravaux described the trades as near-term downside protection. Deribit also saw increased put activity, including a multi-leg strategy across November and December expiries valued at around $190 million, CoinDesk reported. Other trades included November $64,000 puts and March calls, showing that not all positioning was defensive.
Near-Term Hedges, Not a Price Forecast
The options flow matters because it offers a time-stamped view of how some large traders responded to a major exchange security incident. Concentrated demand for puts can signal greater willingness to pay for protection against a drop, particularly when contracts sit close to spot prices and expire soon. The timing described by Paradigm also places some activity before Binance had publicly addressed the incident.
But hedging does not establish that traders expected a crash or that the market had confirmed the scale of the breach. A put can protect an existing bitcoin position, form one leg of a wider strategy, or serve other portfolio needs. The reported notional values measure the bitcoin covered by contracts, not cash spent on premiums or losses already realized. The source also says some traders used calls, underscoring that positioning was not uniformly bearish.
The broader market was uneven in the report: bitcoin, ether and other major tokens weakened, while Monero, Zcash and Hyperliquid’s HYPE token held up comparatively well. CoinDesk also reported pressure on DeFi tokens. These moves provide market context, but the report does not establish that the hack alone caused every asset’s performance.
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How the Binance Incident Unfolded
The trading response followed outflows from a Binance wallet. CoinDesk’s related reporting said Binance estimated the hack’s total impact at about $6.3 billion in stolen assets and said roughly $3 billion had been frozen, including $2.3 billion in USDT and USDC stablecoins. Those figures were Binance’s estimates as reported by CoinDesk, not an independently established final accounting.
The timing of the first options block is significant but does not by itself explain who knew what. Quatravaux said it was executed after the first wallet outflows and before the news became public. That sequence shows the trade preceded public reporting, but the available account does not identify the buyer or establish whether the trader had advance knowledge of the incident.
CoinDesk also reported that the one-week bitcoin options skew briefly rose to 18% during Asian trading hours Friday. Skew compares the volatility premium for puts with that for calls; a positive reading means puts are relatively more expensive. The report said skew remained positive across time frames, indicating continued demand for downside exposure, but the brief peak was not a direct measure of the amount traders expected bitcoin to fall.
““The buying sits close to the current price, at strikes of $74,000 to $78,000, mostly expiring this week and in mid-November.””
— Nicolas Quatravaux, Paradigm’s head of EMEA, as quoted by CoinDesk
What the Trading Data Cannot Show
The identity of the traders behind the largest blocks and their precise motives were not reported. The available information does not establish whether the options were standalone bets, hedges against spot holdings, or parts of larger positions in other markets. Notional value also does not reveal how much buyers paid in premiums or whether the trades later made money.
The final scale and disposition of the stolen assets remained unsettled in the source material. Binance’s reported estimate, the amount said to be frozen and subsequent movement of funds could change as investigators and exchanges trace the assets. CoinDesk’s report does not confirm whether the options activity was based on information unavailable to the public. A trade occurring before public disclosure is not, on its own, evidence of prior knowledge.
Nor does a brief increase in options skew establish that downside demand will persist. The report gives a snapshot of activity over a defined eight-hour period and describes the one-week skew’s peak as short-lived. Later prices, positioning and any confirmed updates about the hack were not yet available in that account.
Updates on Funds and Options Flow
Further reporting is likely to focus on the recovery or freezing of stolen assets, Binance’s continuing accounting of the incident, and whether exchanges or protocols restrict movement of funds linked to the hack. CoinDesk cited a Standard Chartered warning that market weakness could continue and that a new base might form only after more details emerge and affected assets are frozen. That was the bank’s assessment, not a confirmed outcome.
For the derivatives market, subsequent options volumes and skew readings will show whether demand for downside protection persists or fades as information becomes clearer. The October 31 puts were close to expiry, making later data especially relevant to understanding whether traders rolled positions or closed them. No outcome for those contracts was confirmed in the report.
Readers should distinguish reported market positioning from investment guidance. Cryptocurrency prices and derivatives can be volatile, and options can expire worthless or produce substantial losses. The CoinDesk account describes trades and market conditions; it does not establish a reliable direction for future prices.
Key Questions
What did large bitcoin traders do after the Binance hack began?
CoinDesk reported increased buying of bitcoin put options, which can provide a payoff if bitcoin falls below a specified strike price. Paradigm’s reported options block volume reached about $590 million in notional value over eight hours.
What were the main options strikes and expiry dates?
Reported trades included October 31 $78,000 puts and mid-November $74,000 puts. The report said much of the put buying was concentrated around $74,000 to $78,000 strikes, with expiries that week and in mid-November.
Does the put buying prove traders expected bitcoin to crash?
No. Puts can hedge existing holdings or form part of a broader strategy. The trades show demand for downside protection, but do not prove a price forecast or establish what traders’ full positions were.
How much did Binance say was stolen?
In related reporting cited by CoinDesk, Binance estimated the hack’s impact at about $6.3 billion in assets and said roughly $3 billion had been frozen. Those were reported estimates, and the final accounting was not established in the source material.
Was it established that traders knew about the hack in advance?
No. Paradigm’s account placed the first major block trade after wallet outflows began and before public news, but the buyer was not identified. That timing alone does not establish prior knowledge.
Source: coindesk.com
